The Zhitong Finance App learned that on July 11, the Shanghai Economic and Information Technology Commission and the Shanghai Regulatory Bureau of the State Financial Supervision and Administration issued the “Notice on Collaborating to Complete the “Shanghai Industrial Green Loan” financial service work. The notice proposes to focus on key areas and steadily enhance the new advantages of industrial green finance. Support the active transformation and development of manufacturing and financial institutions, expand the scale of industrial green finance, carry out financial product research around key areas such as green transformation, green manufacturing, environmental management, green and low-carbon industries, and clean energy, improve the green finance product system, and actively help physical enterprises transform and develop green and low-carbon.

The original text is as follows:

Shanghai Municipal Economic and Information Technology Commission, State Financial Supervisory Administration, Shanghai Regulatory Bureau “Notice on Collaborating to Complete the “Shanghai Industrial Green Loan” Financial Service

All banks and insurance institutions, relevant cooperative financial units, and relevant units under its jurisdiction:

Thanks to the strong support and joint efforts of various financial institutions, the city's green finance work in the industrial sector has achieved remarkable results. In order to implement the spirit of documents such as the “Notice on Deepening Manufacturing Financial Services to Help Promote New Industrialization” of the Ministry of Industry and Information Technology of the State Administration of Financial Supervision and Administration, the “Guiding Opinions on Accelerating the Greening Development of the Manufacturing Industry” by seven departments including the Ministry of Industry and Information Technology, the People's Bank of China Banking Insurance Regulatory Commission and the Securities Regulatory Commission of the Ministry of Industry and Information Technology, “Guiding Opinions on Strengthening Industrial-Finance Cooperation to Promote Green Industrial Development” and “Shanghai's Action Plan on Aiming at a New Track to Promote the Development of a Green and Low-Carbon Industry (2021-2025)” Improve the functionality and efficiency of the industrial green loan platform mechanism, optimize the management of industrial green loan projects, and collaborate to connect industrial and financial services. The relevant work is now notified as follows:

I. Purpose of work

The “Shanghai Industrial Green Loan” financial service uses policy, technology, enterprise and project information sharing and platform one-door acceptance as a link, green project docking and innovative financial services as a starting point, actively introduces various types of financial capital such as green credit, green bonds, green leases, green funds, green insurance, etc., to promote financial resources to better serve the green development of the Shanghai industry, accelerate the gathering of financial resources in the green and low-carbon sector, and achieve decision-making references for partners; strengthen industry-finance collaboration, make good use of the Bank's carbon reduction support tools, clean and efficient use of coal and other green central bank reloans Financial development policies guide the green and low-carbon transformation of enterprises, maintain the continuous growth of new green momentum, and expand the green and low-carbon service system.

II. Main tasks

1. Focus on key areas and steadily enhance the new advantages of industrial green finance. Support the active transformation and development of manufacturing and financial institutions, expand the scale of industrial green finance, carry out financial product research around key areas such as green transformation, green manufacturing, environmental governance, green and low-carbon industries, and clean energy, improve the green finance product system, and actively help physical enterprises transform and develop green and low-carbon;

2. Set a benchmark model and create a new paradigm of innovative cooperation in green finance. Strengthen industrial project organization and coordination, “equity, loan and debt insurance” linkage and investment linkage, evaluate and recommend advanced green and low-carbon technology, high-quality enterprises and green projects, promote the pilot and application of products and services integrating innovation and integration of inclusive finance, supply chain finance and green finance, and expand the scale of the green and low-carbon industry;

3. Enrich supporting resources and actively build a new industrial green finance ecosystem. Strengthen policy innovation, promote the effective integration of financial resources such as green credit, green bonds, green leasing, green funds, and green insurance with green and low-carbon industrial policies, promote standard setting, encourage green finance innovation, encourage industry associations, industry alliances and other institutions and financial institutions to strengthen cooperation, optimize and improve elements of the green finance ecosystem such as policies, talents, information, and capital, and promote the construction of a green finance ecosystem.

III. Green Finance Innovation Pilot

Green finance is an important engine to support the green and low-carbon development of the industry. It is a strong support to help achieve carbon peaks and carbon neutrality goals. It focuses on innovating green finance products and services, broadening financing channels for green manufacturing, and actively promoting green finance innovation pilot projects.

1. Explore differentiated green credit support. Explore providing differentiated credit support according to the degree of greening of enterprises or the level of energy efficiency and carbon efficiency of projects to promote enterprises to pursue higher levels of green and low carbon; optimize the manufacturing credit structure; and increase credit loan investment.

2. Continue to promote green supply chain finance. Support pilot demonstrations of green supply chain finance, dig deeper into the financing needs of key industrial chain enterprises and project financing, strengthen financing services for chain owners, and support the collaborative green transformation and development of upstream and downstream enterprises through accounts receivable, bills, warehouse receipts and order financing.

3. Support the development of carbon finance pilot demonstrations. In conjunction with the city's industrial carbon management pilot work, promote the product development and application of green finance in carbon assets and carbon finance; research and develop carbon market financing and support tools such as carbon emission rights pledges, carbon buybacks, carbon funds, carbon trusts, carbon insurance, etc., and promote the active participation of various market players in carbon trading.

4. Explore new initiatives to optimize green finance management. Innovate and explore policies for differentiating green project supervision indicators, coordinate and carry out innovative green finance practices, explore new models to promote innovative green insurance cooperation, reduce trial and error costs for research and development of green and low-carbon new technologies, and explore the establishment of a risk sharing mechanism for green projects.

IV. Supporting enterprises

Priority support is given to the following companies:

1. Companies listed as “energy efficiency and water efficiency leaders” in the country or city;

2. Enterprises included in the national or city's green manufacturing demonstration lists such as “green factories, green parks, green supply chains, green products, green design”;

3. Include enterprises that are “specialized, special and new” or “little giants” in the country or city;

4. Green project enterprises supported by national fund investment;

5. Enterprises included in the scope of the city's cleaner production audit;

6. All kinds of listed enterprises, etc. recommended and published by other relevant departments or agencies.

5. Support methods

1. Establish a pool of green enterprises, green projects and experts in green industry and finance. A green enterprise bank is formed on the basis of priority support for enterprises, and exclusive financial services such as supporting policy services and working capital loan guarantees are provided to warehousing enterprises. Strengthen the construction of a green finance service platform in Shanghai and jointly build a green project bank; review incoming green projects, and give priority to providing supporting financial services such as green credit, green bonds, green funds, and green insurance, and support financial institutions to prioritize the selection of warehousing enterprises to participate in green finance innovation pilot demonstrations. Establish a pool of industrial green loan consulting experts to absorb experts with both a high level of financial theory and strong practical ability in industrial finance.

2. Provide diversified targeted green finance products. Encourage contracted financial institutions to develop supporting financing solutions suitable for green projects in response to the characteristics of the green industry, actively promote innovative financial products such as future income collateral such as contract energy management and third-party environmental management, carbon assets, carbon sinks, green supply chain finance, etc., guide financial institutions to support equipment upgrading and technological transformation, broaden financing channels such as green bonds, green leasing, green funds, and green insurance; establish a fast green approval channel to speed up the green project loan approval process.

3. Publish the annual green finance recommendation list. Financial institutions can recommend green projects with outstanding energy saving, emission reduction and carbon reduction effects to the platform every year. The platform regularly publishes the “Industrial Green Loan” green finance project recommendation list after evaluation by professional institutions. For projects included in the recommended list, priority is given to relevant enterprises as municipal and national green manufacturing demonstration recommendation enterprises to optimize the gradient cultivation mechanism of the green manufacturing system. For projects included in the recommended list, financial institutions can increase investment and financing support and insurance coverage for the project according to conditions; financial institutions included in the recommended list, the industry department, together with the financial management department, can set up and publish annual green finance application demonstration review mechanisms such as the “Industrial Green Loan Financial Cooperation Demonstration Agency” and the “Industrial Green Loan Demonstration Project” as needed. Financial supervisory authorities may consider appropriate consideration as additional points in industry evaluations such as service real economy evaluations to support green finance innovation projects to apply for the Shanghai Financial Innovation Award.

6. Working mechanism

The Municipal Economic and Information Technology Commission and the Shanghai Financial Supervisory Authority generally guide and coordinate the operation of the industrial green loan platform mechanism. The office is located in the Industrial Green Transformation and Development Department of the Municipal Economic and Information Technology Commission. Each cooperative financial institution clearly has supervisors and departments, and sets up liaison officers to work together. Establish a conference system. An annual work meeting is held once a year to study annual work priorities and planning arrangements. Establish a green finance notification system. According to the National Development and Reform Commission's “Green and Low-Carbon Transformation Industry Guiding Catalogue”, cooperating financial institutions are required to report the status of “Industrial Green Loan” projects in the industrial sector to the “Industrial Green Loan” Platform Office every six months to keep abreast of the scale and effectiveness of each cooperative financial institution supporting the city's green and low-carbon industrial development.

Shanghai Economic and Information Technology Commission

China Financial Supervisory Authority Shanghai Supervisory Authority

July 1, 2024

This article was edited by the Shanghai Municipal People's Government, Zhitong Finance Editor: Chen Wenfang.